Did you know there is a “LinkedIn for Doctors”?  That is doing $450,000,000 in ARR … growing a fairly mature 18%, but at an insane profitabilty level with a 43% (!) adjusted EBIDTA margin?

Well, there is.

It’s called Doximity and it’s worth $6.5 Billion Dollars.  That’s 12x ARR even with fairly mature growth.  Why?  Profits.  Lots and lots of profits.

5 Interesting Learnings:

#1.  80% of All U.S. Physicians in Their Network.  This turbocharged Doximity’s growth, but truly hitting 80% of your ecosystem has lead to slowing growth as they approach $500m in ARR.

#2.  290 $100,000+ Customers.  That’s how they’ve built up to something big.

#3.  Insanely Profitable — At Scale.  While Doximity was EBITDA positive back in 2019, it really exploded as the business scaled.  Today, it’s on track to generate $181,000,000 in EBITDA in 2023.  Boom!

#4.  The company sells Marketing Solutions and Hiring Solutions — just like LinkedIn, but just for Doctors.  Marketing contracts are short, typically less than 1 year.  Hiring Solutions deals are usually 1 year at a time.

#5.  NRR has Gone from Insane to Merely Very Good.   NRR has dropped to a still strong 119% — from an insane 171% in 2021.

And a few extra notes:

#6. 978 employees, so over $400,000 in revenue per employee.  This is much higher than the $250,000 or so we often see for public SaaS companies … hence the profitability.

#7.  Founder-CEO still owned 27.8% at IPO.  Another reminder of the power of being capital efficient!

#8.  Still just 3% of LinkedIn’s revenue in size.  Just a side note, but LinkedIn today is doing over $15 Billion in ARR.  Yup, $15 Billion.  That means Doximity is just 3% of LinkedIn’s size.  Not something like worth their time to truly go after.

Wow, Doximity!  What a story.  A bit of a marketplace, a bit of a vertical LinkedIn.  And one big winner in a space a lot of folks didn’t think could quite get so big.

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